Post by dee123 on Apr 10, 2018 8:02:46 GMT 1
Hello everyone!
I'm in the process of setting up a furniture website. We will predominantly be starting out with Sofas, and whilst my manufacturer has many designs, we are also looking into hiring our own designers.
And that is where the sticking point is!
We are based in the UK, and are looking at modern and stylish furniture sold at reasonable prices. (Reasonable being around the £750 mark). In looking for designers, I have absolutely no idea on how to structure payments etc. I've read online regarding 'royalty only' design fees, and am inclined to look towards people who may be lacking in experience, but certainly not in talent. As a start up, we have a small budget (no venture capital funding here!), and what I don't want to do, is underpay/exploit staff, but at the same time we cannot determine exactly how many sales we will make.
Is 'Royalty only' a fair way of working with designers; particularly those who may be struggling to find full time jobs in the sector? I have looked at how rates range from 3% to 15% of the wholesale price. Which, when selling a lot, can be a lot of money, but for a start-up, we may only sell 3 pieces a week to begin with.
I hope that is enough information
Dee
I'm in the process of setting up a furniture website. We will predominantly be starting out with Sofas, and whilst my manufacturer has many designs, we are also looking into hiring our own designers.
And that is where the sticking point is!
We are based in the UK, and are looking at modern and stylish furniture sold at reasonable prices. (Reasonable being around the £750 mark). In looking for designers, I have absolutely no idea on how to structure payments etc. I've read online regarding 'royalty only' design fees, and am inclined to look towards people who may be lacking in experience, but certainly not in talent. As a start up, we have a small budget (no venture capital funding here!), and what I don't want to do, is underpay/exploit staff, but at the same time we cannot determine exactly how many sales we will make.
Is 'Royalty only' a fair way of working with designers; particularly those who may be struggling to find full time jobs in the sector? I have looked at how rates range from 3% to 15% of the wholesale price. Which, when selling a lot, can be a lot of money, but for a start-up, we may only sell 3 pieces a week to begin with.
I hope that is enough information
Dee